I prospect for new 401(k) advice clients about every day. I cannot help it.
(Over 41 years of my prospecting habit is hard to break).
Individual investors often resist my initial approach. An independent, third-party investment advisor for their 401(k) is not top of mind.
Their excuses fall into two main categories.
“I don’t have time for this now”
At face value, this is the most reasonable response. Lawyers bill by the hour. Physicians bill by the procedure. There is always “the next Zoom meeting” for a corporate executive.
Time is money for any highly compensated, time-constrained individual investor.
I provide a two-page summary of the annual costs and investment performance of each 401(k) mutual fund.
In less than ten minutes, an individual investor understands “what to buy” in their 401(k).
You can find ten minutes to sit through a thorough review of where your retirement money is invested.
I have no idea how much your time is worth.
But owning the wrong 401(k) mutual funds is worth ten minutes of your time.
Then I deal with the next big 401(k) investment advice objection.
“Why do I need to pay someone to manage my 401(k)?”
The specialization in the business world today cannot be ignored. High level skill does not transfer between professionals these days.
No one is an expert in all areas of their business and personal life.
A good lawyer, a capable tax advisor, and an insurance professional are all key members of your “money team.”
An experienced investment advisor should also analyze your 401(k) account.
Most individual 401(k) participants guess at “what to buy” in their 401(k).
No need to continue to feel guilty. Your inattention to your 401(k) account is common.
Exactly the need for independent, third-party analysis of your 401(k) mutual funds.
Information you have likely never seen in your working career.
Do you have a plan in place for the principal preservation of your 401(k) retirement plan assets?
Your 401(k) retirement plan account is one of the biggest pieces of your investment assets. There is no reason on earth to continue to ride the stock market roller coaster up, and back down, every few years.
There is no need to continue to guess with your 401(k) mutual funds. All you need is a second opinion. You deserve it.
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